Business Studies: Market Research, Segmentation, and the Competitive Environment

Comprehensive fill-in-the-blank practice flashcards covering market research methods, market segmentation, market mapping, and the competitive environment.

Market Research is the process of gathering information about the __________ and customer needs.

market

Market research supports business survival, which is vital given that approximately __________ of new businesses fail each year.

$$\frac{1}{3}$$

Meeting customer needs increases sales, which in turn causes business __________ to increase.

revenue

Businesses must conduct ongoing market research because markets are __________ and trends change all the time.

dynamic

One of the two main risks when launching a new product is that demand may exist, but not enough to cover all the costs of __________ and launching.

developing

__________ Research is original data gathered directly by the business that does not yet exist.

Primary

A focus group typically brings together a group of people for about __________ to participate in a discussion and share opinions.

$$90\,\text{minutes}$$

Questionnaires can provide fixed options or collect responses on a sliding scale, such as from __________.

$$1-10$$

The primary research method that involves watching how customers behave naturally is called __________.

observations

A key benefit of product adaptation over inventing a brand-new product is that it reduces __________ costs.

development

__________ sourced information is secondary data that a business has accumulated in the past, such as sales records.

Internally

A key UK government source for external secondary data is the Office for __________ Statistics.

National

A significant advantage of primary research over secondary research is that __________ do not have access to it.

competitors

__________ data is data that can be counted or measured and presented as numbers, percentages, and graphs.

Quantitative

__________ data is data that explores people's opinions, feelings, and reasons.

Qualitative

Market segmentation is the process of dividing a target market into smaller categories with a particular __________ or interest.

need

Segmenting a market based on impulse buying, special occasions, or religious holidays is known as __________ segmentation.

behaviour

Grouping customers by factors such as gender and family situation is classified under __________ segmentation.

demographics

Market mapping is the process of creating a diagram that identifies products across a market against two criteria, typically price and __________.

quality

In the student's market map shown, which supermarket is plotted alongside Lidl in the low price and low quality quadrant? __________

Aldi

A limitation of market mapping is that identifying a gap in the market does not automatically mean there is __________.

demand

When designing axes for a market map, goods can be categorized by product necessity versus __________.

luxury

__________ competitors are businesses that sell the exact same type of product, such as McDonald's and KFC.

Direct

Businesses that sell different products but satisfy the same customer need (e.g., Eurostar, coaches, and flights to France) are called __________ competitors.

Indirect

To compete on price while maintaining profitability, a business may need to reduce costs by making staff __________.

redundant

A business may choose to locate out of town so that it can operate a large store and offer a wider __________ of products than rival high street shops.

range

Retailers often seek to gain a competitive advantage by providing high levels of customer __________.

service

In the MOPS business revision framework, the acronym stands for Market, Objectives, Product/Service, and __________.

Situation

A major disadvantage of using internet-based secondary research is that __________ can easily access the exact same data.

competitors